12. Provisions & Contingencies

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events for which it
is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated as at
the balance sheet date.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but will
probably not, require an outflow of resources. information on contingent liabilities is disclosed in the notes to financial
statements unless the possibility of an outflow of resources embodying economic benefit is remote.

A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit is probable.

13. Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership over the lease term are classified
as operating lease. Lease payments for assets taken on operating lease are recognised as an expense in the Profit and Loss
Account on a straight-line basis over the lease term.

14. Income tax

Income tax expense for the period is the tax payable on the current period's taxable income based on the applicable income tax
rate and changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. The current
income tax charge is calculated in accordance with the provisions of the Income Tax Act 1961.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted at the end of the
reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled

Deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognised for all
deductible temporary differences and brought forward losses only if it is probable that future taxable profit will be available to
realize the temporary differences

Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle
on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.

15. Employee benefits

a) Short-term obligations

All employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee
benefits. These are expensed as the related service is provided. Aliability is recognised for the amount expected to be paid if the
Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.

b) Post-employment obligations i.e.

• Defined benefit plans and

• Defined contribution plans.

Defined benefit plans:

The Company's net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that
employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan
assets. The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit
method

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in
the period in which they occur, directly in other comprehensive income. Remeasurements are not reclassified to profit or loss in
subsequent periods

Defined contribution plans:

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The
Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as
defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

16. Financial instruments
Initial Recognition

Financial instruments i.e. Financial assets and financial liabilities are recognised when the Company becomes a party to the
contractual provisions of the instruments. Financial instruments are initially measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial instruments (other than financial instruments at fair value through
profit or loss) are added to or deducted from the fair value of the financial instruments, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial instruments assets or financial liabilities at fair value
through profit or loss are recognised in profit or loss.

Subsequent Measurement
Financial Assets

All recognised financial assets are subsequently measured at amortized cost except financial assets carried at fair value through
Profit and loss (FVTPL) or fair value through other comprehensive income (FVOCI).

a) Equity investments (other than investments in subsidiaries, associates and joint venture)

All equity investments falling within the scope of Ind-AS 109 are mandatorily measured at Fair Value Through Profit and
Loss (FVTPL) with all fair value changes recognized in the Statement of Profit and Loss.

The Company has an irrevocable option of designating certain equity instruments as FVOCI. Option of designating
instruments as FVOCI is done on an instrument-by-instrument basis. The classification made on initial recognition is
irrevocable.

If the Company decides to classify an equity instrument as FVOCI, then all fair value changes on the instrument are
recognized in Statement of Other Comprehensive Income (SOCI). Amounts from SOCI are not subsequently transferred to
profit and loss, even on sale of investment.

b) Derecognition

A financial asset is primarily derecognized when the rights to receive cash flows from the asset have expired, or the
Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a pass-through arrangement; and with that a)the Company
has transferred substantially all the risks and rewards of the asset, or b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

c) Impairment of financial assets

The Company applies the expected credit loss model for recognising allowances for expected credit loss on financial assets
measured at amortised cost.

Financial Liabilities
Classification

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial liability and an equity instrument.

Subsequent measurement

Loans and borrowings are subsequently measured at Amortised costs using Effective Interest Rate (EIR), except for financial
liabilities at fair value through profit or loss. Amortised cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. Amortisation is included as a part of Finance Costs in the
Statement of Profit and Loss.

Financial liabilities recognised at FVTPL, including derivatives, shall be subsequently measured at fair value.
a) Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

Derivatives f inandal instruments

The Company uses derivative financial instruments, such as forward currency contracts to mitigate its foreign currency risks.
Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered
into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive
and as financial liabilities when the fair value is negative.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable
right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability
simultaneously.

Re-classification of financial instruments

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no
reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are
debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to
the business model are expected to be infrequent. The Company's senior management determines change in the business model
as a result of external or internal changes which are significant to the Company's operations. Such changes are evident to
external parties. Achange in the business model occurs when the Company either begins or ceases to perform an activity that is
significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the
reclassification date which is the first day of the immediately next reporting period following the change in business model. The
Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest. The
Company has not reclassified any financial asset during the current year or previous year.

As per our report of even date attached For & on behalf of the Board of Directors

Ravi Kumar Distilleries Limited

For Abhishek S Tiwan & Associates

^Cha^rte^red ^countante R.V. Ravikumar Badrinath S Gandhi

^{Firm R}egis^trati°n IMumbei- : ¹⁴¹⁰⁴⁸W Managing Director Executive Director

. DIN: 00336646 DIN:01960087

CA Abhishek b Tiwan _

Partner Manohar Waman Oak L. Bhuvaneswari

^Membe^rship ^Numbe^r : ¹⁵⁵⁹⁴⁷ Company Secretary Chief Financial Officer

UDIN: 25155947BMJBDW7038 ^{7 7}

Date : 27th May 2025 Date : 27th May 2025

Place : Puducherry Place : Puducherry